In a major step toward positioning Nigeria as a global automotive manufacturing hub, the Federal Government has signed a Memorandum of Understanding (MoU) with South Korea’s Asia Economic Development Committee (AEDC) for the establishment of an Electric Vehicle (EV) manufacturing plant and the development of charging infrastructure across the country.
The MoU was signed on January 30, 2026, in Abuja through the Office of the Honourable Minister of State for Industry, Federal Ministry of Industry, Trade and Investment (FMITI). The agreement is designed to support Nigeria’s transition to clean energy and advance local automotive manufacturing capacity.
The partnership aligns with key government policies, including the National Energy Transition Plan (ETP) and the National Automotive Industry Development Plan (NAIDP), both of which seek to build a robust ecosystem for EV infrastructure development, expansion, and adoption in Nigeria.
Under the agreement, Phase I of the project will focus on the construction of a complete EV assembly plant, while Phase II will establish facilities for full in-house production. The project is projected to have an annual production capacity of 300,000 vehicles and is expected to create about 10,000 direct jobs.
Stakeholders note that the initiative will deliver significant economic benefits, including a reduction in Nigeria’s estimated annual expenditure of about $10 billion on refined fuel imports. The expansion of EV adoption is also expected to stimulate growth in related industries such as auto parts manufacturing, charging infrastructure, vehicle maintenance, and other ancillary services, further positioning Nigeria as a technology-driven economy in Africa.
Speaking at the event, AEDC Chairman, Yoon Suk Hun, reaffirmed his organisation’s commitment to the project, noting that Korea’s development experience would be deployed to fast-track Nigeria’s automotive growth.
“We will devote all of our capabilities to ensuring that Nigeria’s EV industry is built in the most economically viable manner and operated with maximum efficiency, while achieving global competitiveness,” he said. “Our goal is to elevate Nigeria’s automotive industry to world-class standards within 20 to 30 years—an achievement that took advanced economies 150 years and Korea 60 years to accomplish.”
On his part, the Minister of State for Industry, FMITI, Senator John Owan Enoh, pledged the Federal Government’s full cooperation to ensure the timely completion of what he described as Africa’s first advanced, world-class EV manufacturing plant. He assured that all available resources would be mobilised to make the project a cornerstone of Nigeria’s industrial development.
The Minister further emphasized that the MoU strongly aligns with President Bola Ahmed Tinubu’s “Nigeria First Policy,” which prioritises local production and industrialisation. According to him, the agreement underscores the Federal Government’s commitment to building a diversified economy driven by domestic manufacturing.
Also speaking, the Director-General of the National Automotive Design and Development Council (NADDC), Otunba Oluwemimo Joseph Osanipin, represented by the Head of Policy, Planning and Statistics, Mr. Nura Sidi, disclosed that the collaboration would focus on technology transfer, investment promotion, human capital development, as well as research and design.
He noted that, in line with its mandate, the Council had earlier initiated the EV development policy, which has already led to the introduction and adoption of various electric vehicles—some locally assembled and others imported into the country.
Through this green energy initiative, Nigeria aims to transform its economy into a high value-added manufacturing base powered by clean energy. The project also includes plans to develop a comprehensive EV ecosystem, encompassing component manufacturing, technology acquisition, charging infrastructure development, and battery production.
